Sprint on Tuesday announced a new plan called `Framily Plan,' which allows members of family, friends and neighbors to join up and enjoy savings on their monthly bills.

Members of the Framily Plan will not share a pool of data or receive a single bill, but their monthly bills will come down as more members join them. The first subscriber will pay $55 a month and receive unlimited talk and text along with 1GB of Internet data. The bill will tumble by $5 a month every time another person joins the plan.

A maximum of 10 persons can join the plan, but the maximum saving has been pegged at $30 a month. It means each member's monthly bill can come down to $25 a month.

Stressing on the need of the new plan, Sprint chief executive Dan Hesse said family plans could save money in households of three or more people, but more than half of all U. S. households have just 1-2 people.

If a member wants unlimited data instead of the 1GB provided by the plan, he/she can get more by paying additional $20 a month. It should also be noted here that subscribers will have to either bring their own phone or purchase it from the network provider in installments.

The Framily Plan will be available starting January 10, 2014.